Comparing Atour Lifestyle (NASDAQ:ATAT) and H.I.S. (OTCMKTS:HISJF)

H.I.S. (OTCMKTS:HISJF) and Atour Lifestyle (NASDAQ:ATAT) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, institutional ownership, risk, earnings, profitability, analyst recommendations and valuation.

Volatility & Risk

H.I.S. has a beta of -0.24, meaning that its share price is 124% less volatile than the S&P 500. Comparatively, Atour Lifestyle has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500.

Profitability

This table compares H.I.S. and Atour Lifestyle’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
H.I.S.	1.17%	13.38%	2.20%
Atour Lifestyle	16.58%	46.96%	18.90%

Insider & Institutional Ownership

17.8% of Atour Lifestyle shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for H.I.S. and Atour Lifestyle, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
H.I.S.	0	0	0	0	0.00
Atour Lifestyle	0	1	8	0	2.89

Atour Lifestyle has a consensus target price of $48.00, indicating a potential upside of 26.02%. Given Atour Lifestyle’s stronger consensus rating and higher possible upside, analysts clearly believe Atour Lifestyle is more favorable than H.I.S..

Earnings and Valuation

This table compares H.I.S. and Atour Lifestyle”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
H.I.S.	$2.50 billion	0.39	$31.62 million	$0.40	32.73
Atour Lifestyle	$1.40 billion	3.76	$231.80 million	$1.62	23.51

Atour Lifestyle has lower revenue, but higher earnings than H.I.S.. Atour Lifestyle is trading at a lower price-to-earnings ratio than H.I.S., indicating that it is currently the more affordable of the two stocks.

Summary

Atour Lifestyle beats H.I.S. on 11 of the 13 factors compared between the two stocks.

About H.I.S.

H.I.S. Co., Ltd. provides travel agency services worldwide. The company offers sports related tours, such as ski and diving tours; casual to luxury cruises; escort accompanied tours, honeymoons, and onboard weddings; and local tour services in Australia, Thailand, Bali Island, Guam, and South Korea. It also operates hotels and theme parks; an online platform for various travel services; and bus tours connecting Tokyo and the surrounding area to Kansai and Nagoya. In addition, the company offers advertising services; and domestic and overseas travel insurance products. Further, it operates Hapi-robo st, a robot; offers various types of construction works; provides hotel amenities, guest room facilities, and furniture and electronic appliances for offices and houses; sets and manages events; coordinates with Japan medical tourism; and offers direct sales support services. Additionally, the company provides a range of diploma and certificate programs in business, international trade, hospitality, information technology, and health care; and communication equipment and services. Furthermore, it operates Smrt English, an English learning platform; and GREEN OCEAN, a job placement agency that focus on agriculture and accommodation business. The company was formerly known as International Tours Co., Ltd. and changed its name to H.I.S. Co., Ltd. in 1990. H.I.S. Co., Ltd. was incorporated in 1980 and is headquartered in Tokyo, Japan.

About Atour Lifestyle

Atour Lifestyle Holdings Limited, through its subsidiaries, develops lifestyle brands around hotel offerings in the People’s Republic of China. The company provides hotel management services, including day-to-day management services of the hotels for the franchisees; and sells hotel supplies and other products. It also offers retail management service; investment management service; financial information service management; property management services; and software and technology services, as well as operates travel agency. Atour Lifestyle Holdings Limited was incorporated in 2012 and is headquartered in Shanghai, China.